- Published 23 Dec 2020
The United States government has finally passed a $900 billion Covid-19 stimulus, including a one-time $600 payment to individual Americans.
For many people, this will be an essential part of helping them meed ends. The pandemic has furthered the inequality already present in America and extreme poverty across the globe is set to rise this year for the first time in more than two decades.
You might be one of the fortunate people who has been able save more money during the pandemic (e.g. due to less commuting, eating out, travelling etc) and therefore you might be considering donating your stimulus money to charity.
If so, we applaud you! And here are 3 ways to do the most good with your donation.
Funds strike a good balance between being very easy for donors and highly effective. They help donors to pool their money together so that they can find outstanding giving opportunities that are evaluated by expert grantmakers and charity evaluators.
Using a charity regranting fund is similar to using an investment fund instead of trying to pick which individual stocks will be the best investments.
Check out our list of recommended charity funds.
Another easy way of donating to highly effective charities is to follow the advice of charity evaluators who prioritise effectiveness in their charity reviews. We recommend checking out the following evaluators:
- GiveWell (Global Health & Development)
- Animal Charity Evaluators (Animal Welfare)
- Founders Pledge (Various Cause Areas)
You can donate to many of the charities they recommend in one place using EA Funds.
It can be valuable to do your own research to find excellent giving opportunities. If you’re going to do your own research, decide how much research to do based on (a) how much you’re giving; and (b) how much you might give in the future. If you’re giving a lot now, or in the future it can be worth the time invested.
If you’re donating to individual charities we also recommend discussing your options with other people interested in effective giving (such as the Giving What We Can community), looking at the research conducted by charity evaluators, and reading our guide on how to evaluate charities.
We applaud your generosity and commitment to helping others.
For a more detailed guide to donating effectively, check out our guide to giving effectively.